Kathren Rusinovich

Broker

Dangers Of Overpricing

Minimizes Offers

• An overpriced property discourages prospective buyers from making offers since the difference between the asking price and market price is substantial.

Declining salesperson enthusiasm and response

• Salespeople lose interest in property that is overpriced.

Less qualified buyer exposure

• Overpriced properties fail to attract qualified buyers.

Decline in showings

• Salespeople avoid showing overpriced properties to prevent them from losing credibility with buyers.

Lose prospects from sign calls

• Prospects who learn about property from the sign are turned off if it is overpriced and will often hang up.

Limits financing

• Financial institutions and mortgage companies finance only a percentage of the real market value. If the property is overpriced it will usually limit the available financing.

Waste of advertising dollars

Less for seller

• Eventually market interest declines to the point where the seller takes less than he or she would have taken if the property had be priced correctly to begin with.